Citigroup Shares Jump After Q3 Results Beat Forecasts

Citigroup (C)shares rose in early Monday trading after the bank topped analysts' third-quarter profit estimates, although profit fell from last year due to a brokerage unit write-down.

Speaking on a conference call with analysts, CFO John Gerspach said, "We're seeing some elements of stabilization in the housing markets," which is boosting its mortgage lending group. But Gerspach cautioned the market is not out of deep water yet.

The report came after JPMorgan Chase (JPM), the largest U.S. bank, and Wells Fargo (WFC) on Friday reported better-than-expected Q3 profit growth, but saw shares fall after both noted regulatory uncertainty and other economic hurdles.

Citigroup's Q4 profit plunged on a $4.7 billion write-down of its stake in a brokerage operated by Morgan Stanley, but North American mortgage revenue rose.

The company may also have gotten a boost from a Supreme Court ruling Monday in which it refused to review lawsuits that blamed Citigroup and McGraw-Hill (MHP) for the drop in value of employee retirement plans that invested in company stock.

Citigroup shares were up 3.4% in late morning trading, at 35.90. Wells Fargo, the top-rated company in the Banks-Money Center group, which is ranked No. 117 down on the list of 197 industry groups IBD tracks, was down 1.3%.

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07/23/2015 01:21 PM ET

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